Micro Economic Project Report

MANAGERIAL ECONOMICS
TABLE OF CONTENTS Title Page No.
ACKNOWLEDGEMENT 2
TABLE OF CONTENTS 3
CHAPTER 1- INTRODUCTION 4
1.1 INTRODUCTION 4
1.2 OBJECTIVES OF THE PROJECT 5
1.3 SCOPE OF THE PROJECT 6
1.4 METHODOLOGY 7
CHAPTER 2- PROFILE OF AN ORGANISATION 8
CHAPTER 3- MICRO ECONOMIC CONCEPT 9
3.1 DECISION MAKING 11
3.2 EQUILIBRIUM POINT 12
3.3 ELASTICITY 13
3.4 DEMAND FORECASTING 17
3.5 PRODUCTION- RETURN CONCEPT 22
3.6 COST AND REVENUE 23
3.7 BREAKEVEN POINT 25
3.8 MARKET STRUCTURE AND COMPETITION 26
MICRO ECONOMIC OF AN MANUFATURING SECTOR JANEEFAR .DJ (MBA)

FINDINGS, SUGGESTIONS AND CONCLUSION 27
INTRODUCTION:
The project work and field study on the industry “Jai furn world” is mainly conducted to
identify and understand the “Micro Economic Concepts” such as Decision making, Market
Equilibrium (Demand and Supply), Production, Cost and Revenue and Market Structure.
Micro Economics is concerned with the behaviour of individual entities such as markets, firms
and households. It also considers how individual prices are set such as the prices of land, labour
and capital. It includes the identification of the remarkable efficiency properties of market. Micro
Economics can explain how the self-interest of individuals working through the competitive
market can produce a societal economic benefit. Today, Micro Economics has moved beyond the
early concerns to include the study of monopoly, the role of international trade, finance and
many other vital subjects.
Micro Economics is a detailed study of the behaviour of individual firms, consumers and
markets. Individual markets contain much of the grand sweep and drama of economic history
and the controversies of economic history and the controversies of economic policy.
Understanding supply and demand requires more than simply parroting the words. A full mastery
of microeconomic analysis means understanding the demand curves, supply curves, learning
about different concepts of costs, and understand how perfect competition differs from
monopoly.
All these and other key topics will be our subjects as we tour through the industry to
understand the fascinating world of Micro Economics.

1.2 OBJECTIVES OF THE PROJECT
The main objective of our company is to produce a extraordinary sense of Quality to
look good , feel and longevity of our furniture’s, making them a great value for your investment.
● To Maintaining the highest quality furniture and be a leading manufacturer in the

furniture industry.
● Delivery in period of time
● Provide employment opportunities for the society
● To develop skills and knowledge in woodworking to our employees
● To maintain technological leadership through continues effort to update product
technology and manufacturing method in company
● To maintain employment and safeguard the interest of labours.
● We use raw material efficiently and effectively
PRIMARY OBJECTIVE:
The primary objective of this project is to study about the demand and supply in the
industry “Jai fun world”.
SECONDARY OBJECTIVE:
The secondary objectives of this project are:
 To know about the company
 To know the demand and supply of the product
 To know how decision making is done in this company
 To know the demand forecasting of the product

1.3 SCOPE OF THE PROJECT
Every project is conducted to fulfil certain objective and this in turn fulfils some purpose
and is of significance for one or more than one party. This company provide unique product in
aesthetic and practical mix of both traditional and temporary designs, we integrate Hand beaten
Copper, Brass, Steel, Handmade as well as Imported Tiles and Hand Paintings into the design
and manufacturing of our wooden furniture so the company has more scope in future
 This project provides a practical insight of demand and supply in a company

 To know the latest trend of demand and supply for the product
 This project is also helpful in the demand forecasting
 Planning to implement more ancient model to attract customers
 Delivery of supply can take place further more faster
 Implementing more innovating idea to create increase number of orders
 Implementing different technology of machines to do work

1.4 METHODOLOGY
DATA COLLECTION:
Primary Data: The primary data was collected by having conversation with the company
owner. Like the information about the demand and supply trend.
Secondary Data: Secondary data was collected from the website of the company. It is the details
regarding the history of the company.
RESEARCH DESIGN:
The research design refers to the overall strategy that we choose to integrate the different
components of the project in a coherent and logical way, thereby, ensuring effective addressing of
demand and supply of the product.
This project is a causal or experimental research design which describes the market demand and
supply of the company’s product and its price. The collected data is made to measure the impact of
manipulation on independent variable on dependent variable.
4.1FIELD STUDY
Had a clear study about the company production unit
Primary data:
Collected information with workers
Secondary data:
Analysis competitor for the company we choosen

3.2 SWOT ANALYSIS
Strength:
 Best servicing
 Time management
 Customer loyality
Weakness:
 Infrastructure lacking
 Insufficient place
Opportunity:
 Importing new trending design

 Digital marketing
Threads:
 Company don’t not have online marketing

Profile of organization:
Jai furn world
Nature of Business Manufacturer/ retailers
Additional Business Service Provider
Company CEO Manikandan
Year of Establishment 2005
Since 2005, Jai Furn World in Saravanampatti, Coimbatore has been in the business of
retailing and distributing furniture. This dealer primarily stocks and retails furniture and interior
décor for homes and households. It also deals in office furnishings for commercial spaces and
business establishments. In the business for years, this enterprise is one of the prominent points-
of-sale in the city for buying fancy and stylish furniture pieces. It features a product range that is
sync with the accepted trends and styles in interior décor and design. Being of high quality, trendy
designs and available at affordable price points, the products have helped them gain a staggering
base of customers over the course of time.
We use Traditional methods and processes of Hand Crafting in making our furniture’s with
highly talented craftsmen. In additional we use high quality of woods like

➢ Teak Wood
➢ Sissoo Wood
➢ Satinwood
➢ Rosewood
➢ Pine Wood
➢ Mulberry Wood
➢ Mahogany Wood
➢ Bamboo wood etc..,
Incorporating aesthetic and practical mix of both traditional and temporary designs, we
integrate Hand beaten Copper, Brass, Steel, Hand made as well as Imported Tiles and Hand
Paintings into the design and manufacturing of our wooden furniture’s.
We also use Custom Designed & exclusively manufactured Handles, walking that extra
mile to ensure our furniture’s get a classic look perfectly in alignment with the theme of the
overall design & style, thus giving them a very fresh look and feel.
Attention to minute details and extraordinary sense of Quality is displayed in the

finishing, look, feel and longevity of our furniture’s, making them a great value for your
investment. we have 300 plus employee working in our company in on sit and offsite .the
employee are well talented in the work. the work finishing done by the works is too good. Even
the company concentrate more in finishing part and the wood use in furniture company in high
quality so the wood last long for many years
We have executed projects both in the Home as well as Commercial sectors. the main
produce ands service provided are
➢ Interior Design
➢ Home Styling
➢ Designer Furniture

Services offered by Jai Furn World
Jai Furn World in Saravanampatti has a vast catalogue of furniture pieces to cater to
residences as well as office spaces. For decorating your home, you can select from a variety of
elegantly crafted wooden almirahs, center tables, cottz beds, dining tables, diwan-cum-beds, foam
diwans, sofa sets and dining tables. You can shop for a wide range of office furniture such as
executive chairs. This establishment is also into designing, installing and support services for
modular kitchens through kitchen-by-design service. On the premises is a team of sales staff that
help you in shortlisting from their furniture range according to your needs and requirement
For the local citizens of Saravanampatti, this furniture retailer is a recognised name. It
occupies a prominent location at Shop no 201, Sathy Main Road, surrounded by innumerous
shopping destinations and commercial complexes. Sathy Main Road acts as a landmark in locating
this showroom. Contact numbers to reach out to this dealer are: +(91)-422-2667886.
Address
+(91)-422-2666886
+(91)-9943314929
Shop no 201, Sathy Main Road, Saravanampatti, Coimbatore - 641035, Opposite to City
Union Bank
www.jaifurnworld.com

Recent click of jai furn world showroom:

CHAPTER -3
MICRO ECONOMIC CONCEPT
3.1 DECISION MAKING
SITUATION 1:
The Proprietor was involved in Trading since 2005. In the year 2009, he wish to start new
showroom, that time he need to take decision to start up new showroom are go up with old one .
He had two options. They are:
1. To maintain a old furniture showroom with taken for rent.

2. To build new furniture showroom .
He decided to start a new furniture showroom because there is huge demand for this, to attract
customer he thought a good better showroom is needed. The consequence of his decision was
positive.
ANALYSIS: S.NO OPTION 1 OPTION 2

1 He has normal investment . He has to invest more. i.e to
. build the new showroom,
land , labor need to increase
2 He have sufficient number He has to increase the
of clients service and client ,so that he
can get huge number of
profit.
3 It can minimum of 3 labors He has to invest in human
in company so that he can resource.
manage the salary expenses .

4 Less maintenance. More maintenance.
Here the building up new furniture showroom lead to better development and good profit to the
organization ,even our suggestion is to choose option 2,even though more investment we can get
the invest amount within 3 yr period of time, and it lead to better development to the
organization
SITUATION 2:
The Proprietor was involved in furniture manufacturing since 2005, He had good supply in
market ..the order are more so he not able to fulfill his demand so he thought to expand his
manufacturing firm in April 2016 ,so. He had two options. They are:
1. To continue with the older manufacturing unit
2. To explain manufacturing unit
He decided to expand his manufacturing firm, after the month of December ,later due to
demonetisation there were huge problem in change of money so the business goes down
Business Impact Analysis of demonetization :

1. Liquidity – The immediate impact will be on liquidity. Businesses dealing with a large
amount of cash can no longer use the currency to drive business.
2. Loan Demand – To fill up the gap and run the business smoothly the demand of loans or
funding from the bank and other financial institutions will increase.
3. Loan Dis-approval – Businesses dealing with cash will have difficulty in getting funding
as the Balance sheet will give a different story, making them unqualified for loans.

Moreover, Banks will be reluctant and extremely cautious as they would want to avoid
NPA’s.
4. High Cost – Even if one can avail funding through other institutions, the cost of lending
will be much higher.
Then,GST playes major role ,increse of tax upto 28% so that sales goes totally down,because
I/34 of money is goes for tax so people not affored to buy product so he canclled to expand his
manufacturing firm.

Therefore in GST the final produce by manufacturer of wooden furniture will be taxed at 12
%which in the current VAT was 12.5% However the rate of plywood has become 28% which in
the current VAT was 5–6%. Although the credit can be claimed.

3.2 EQUILIBIRIUM POINT
Economic equilibrium may also be defined as the point at which supply equals demand for a
product, with the equilibrium price existing where the hypothetical supply and demand curves
intersect.
DEMAND SUPPLY
10000 4.3 1.5
25000 3.5 3
30000 2.5 4.5

40000 1 5
4
DEMAND
3
SUPPLY
2 Column1
0
10 25 30 40
Where, X axis = Quantity

Y axis = Price
DEMAND:
Demand is the willingness and ability of buyers to purchase different quantities of good
at different prices during a specific period of time.
Demand is determined by the following:

Size of the market
Income of the consumer
Price of the related goods
Taste and preferences
Population
Government policies
Special influences

As the economy has grown, more consumers are willing to buy luxury items for their living and
work environments. The global luxury furniture market is expected to grow at a CAGR of over 4
percent between 2015-2019. In terms of location, Europe has the largest market for luxury
furniture, but developing countries such as China and India are not far behind. Demand of
furniture is being increasing in this modern days.
More furniture vendors are choosing to go green.

With luxury comes the expanding trend to go green. Many vendors are developing eco-
friendly furniture. This trend is driven by environmental concerns, such as the problem of
deforestation. Although eco-friendly furniture is more expensive, the demand is on the rise,
making it worthwhile for manufacturers and companies to offer these products.
SUPPLY:
The supply side of the market typically involves the terms on which the business produce and sell
their products. More precisely, supply relates to the quantity supplied of a good to its market price.
Supply is determined by the following:
Cost of production
Prices of inputs
Technological advances
Prices of related goods
Government policy
Special influences
The product is supplied at the cost of 30,000 INR for wooden king size double bed

.
The few data that we could 30,000 INR -
collect are represented below:
Prices of Inputs
Cost of Production 20,000 INR (per ton - approx
Production and operation plan:

Plans for input:
To be able to perform the aggregate planning process, the following information should
be available to this production planning team. These data include the following:
● Hire additional workers as demand increases
● Employment costs for advertising, travel, interviewing, training, and others
● Shift premium costs if additional shift is added
● Skilled workers may not be available when needed
● Layoff workers as demand decreases
● Cost of severance pay & increases in unemployment insurance costs
● The company must have adequate capital investment in equipment for the peak work
force level
● Materials / purchasing Information
● Operations / manufacturing Information
● Engineering / process Designs
● Sales, marketing and distribution Information
● Financial and accounting information
● Human resources information

Managing labours in emergency time:
● Providing foods to workers

● Encouraging them
● Proving overtime salary
● Providing additional leaves in future
● Having mind relaxation section etc..,
Price fixing:
● All prices must cover costs and profits.

● Review prices frequently to assure that they reflect the dynamics of cost, market demand,
response to the competition, and profit objectives.
● Prices must be established to assure sales.
Cost of materials 22000.00
+ Cost of labor 3000.00
= Total cost 25000.00
+ Desired profit (30% on sales) 7000.00
= Required sale price 32000.00
Demand Price
Demand pricing is determined by the optimum combination of volume and profit. Products
usually sold through different sources at different prices retailers, discount chains, wholesalers,
or direct mail marketers are examples of goods whose price is determined by demand. A
wholesaler might buy greater quantities than a retailer, which results in purchasing at a lower

unit price. The wholesaler profits from a greater volume of sales of a product priced lower than
that of the retailer. The retailer typically pays more per unit because he or she are unable to
purchase, stock, and sell as great a quantity of product as a wholesaler does. This is why retailers
charge higher prices to customers. Demand pricing is difficult to master because you must
correctly calculate beforehand what price will generate the optimum relation of profit to volume.
Competitive Pricing
Competitive pricing is generally used when there's an established market price for a particular
product or service. If all your competitors are charging $100 for a replacement windshield, for
example, that's what you should charge. Competitive pricing is used most often within markets
with commodity products, those that are difficult to differentiate from another. If there's a major
market player, commonly referred to as the market leader, that company will often set the price
that other, smaller companies within that same market will be compelled to follow.
To use competitive pricing effectively, know the prices each competitor has established. Then
figure out your optimum price and decide, based on direct comparison, whether you can defend
the prices you've set. Should you wish to charge more than your competitors, be able to make a
case for a higher price, such as providing a superior customer service or warranty policy. Before
making a final commitment to your prices, make sure you know the level of price awareness
within the market.
If you use competitive pricing to set the fees for a service business, be aware that unlike a
situation in which several companies are selling essentially the same products, services vary
widely from one firm to another. As a result, you can charge a higher fee for a superior service
and still be considered competitive within your market.
Mark-up Pricing
This pricing method often generates confusion--not to mention lost profits--among many first-
time small-business owners because markup (expressed as a percentage of cost) is often
confused with gross margin (expressed as a percentage of selling price). The next section
discusses the difference in markup and margin in greater depth.

Cost reduction
Waste management control
● conserving raw materials in correct amount
● minimizing waste volume and toxicity
● eliminating or minimizing the number of regulatory requirements
● that apply to your operations and the risk of associated penalties
Technology implementation
● Cutting machine
● Sander machine
● Drilling machine
● Planning machine
● Compressor polish

3.3 ELASTICITY:
Supply and demand can often tell us whether certain forces increase or decrease quantities.
But for these tools to be truly useful, we need to know how much supply and demand respond to
changes in price. The quantitative relationship between price and quantity purchased is analysed
using the crucial concept of elasticity.
DEMAND ELASTICITY:
The price elasticity of demand measures how much the quantity demanded of a good changes
when its price changes.
𝑫𝒆𝒎𝒂𝒏𝒅 𝑬𝒍𝒂𝒔𝒕𝒊𝒄𝒊𝒕𝒚= 𝑷𝒆𝒓𝒄𝒆𝒏𝒕𝒂𝒈𝒆 𝒄𝒉𝒂𝒏𝒈𝒆 𝒊𝒏 𝒒𝒖𝒂𝒏𝒕𝒊𝒕𝒚 𝒅𝒆𝒎𝒂𝒏𝒅𝒆𝒅/𝑷𝒆𝒓𝒄𝒆𝒏𝒕𝒂𝒈𝒆

𝒄𝒉𝒂𝒏𝒈𝒆 𝒊𝒏 𝒑𝒓𝒊𝒄𝒆
COLLECTED YEAR QUANTITY PRICE PER SET

DATA: S.NO DEMANDED (PER (INR)
MONTH) king size
wooden bed
1 2017 10 30,000
2 2016 15 25,000
In this case, percent change in price is more hence it is a product with considerable elasticity

SUPPLY ELASTICITY:
Consumption is not the only thing that changes when prices go up or down. Businesses also
respond to price in their decisions about how much to produce. Economists define the price elasticity
of supply as the responsiveness of the quantity supplied of a good to its market price. 𝑺𝒖𝒑𝒑𝒍𝒚
𝑬𝒍𝒂𝒔𝒕𝒊𝒄𝒊𝒕𝒚= 𝑷𝒆𝒓𝒄𝒆𝒏𝒕𝒂𝒈𝒆 𝒄𝒉𝒂𝒏𝒈𝒆 𝒊𝒏 𝒒𝒖𝒂𝒏𝒕𝒊𝒕𝒚 𝒔𝒖𝒑𝒑𝒍𝒊𝒆𝒅/𝑷𝒆𝒓𝒄𝒆𝒏𝒕𝒂𝒈𝒆 𝒄𝒉𝒂𝒏𝒈𝒆 𝒊𝒏

𝒑𝒓𝒊𝒄𝒆
COLLECTED YEAR QUANTITY PRICE (INR)

DATA: S.NO SUPPLIED (PER
MONTH)
1 2017 10 30,000
2 2016 15 25,000
Therefore, Supply Elasticity

Elasticity in nature

3.4 DEMAND FORECASTING:
Demand forecasting is predicting future demand for the product. In other words, it refers
to the prediction of probable demand for a product or a service on the basis of the past events and
prevailing trends in the present.
Calculation for demand forcasting
YEAR y(demand)SALE CR (x)X2 XY

2013 80 2 6400 160
2014 85 2 7225 170
2015 89 2 7921 178
2016 80 1.5 6400 120
2017 65 1 4225 65
399 8.5 32171 693
Y=a+bx
∑y=na+b∑x
-∑xy=a∑x+b∑x2
693=a9+b32171
399=5a+b399
 5*(693=a9+b32171)
 9*(693=a9+b32171)
3465=a49+160855
3591=a45-3591
-126=b157264

B=-8012
A=-0.124
∑y=na+b∑x
399=6*0.124+8012*9
2018=72168
2019=72108
2020=72108
2021=72109
2022=72109
From this above information ,We came to know that the sales for the year 2013,2014,2015 was more
than the current years that is 2 crore and for the upcoming years th sales will rise . The company will
have a more demand in the coming years.

3.5 PRODUCTION – RETURN CONCEPT:
The production function specifies the maximum output that can be produced with a given quantity of
inputs. It is defined for a given state of engineering and technical knowledge.
Various stages of productivity can be witnessed in the company proving the law of variable
proportions.(production of master normal bed set(per month))
Labour TP AP MP
1 0 0 0
2 18 9 18
3 25 8.333333 7
4 35 8.75 10
5 40 8 5
6 45 7.5 5
7 55 7.857143 10
8 60 7.5 5
9 70 7.777778 10
10 75 7.5 5
100%
90%
80%
70%
60%
MP
50%
AP
40%
TP
30%
20%
10%
0%
1 2 3 4 5 6 7 8 9 10

Where X axis – Unit of labour
Y axis – Marginal Products/Returns
FINANCIAL PLAN
Below are the initial financial goals for the company:
 Obtain an operating line of credit from a financial institution.
 Finance growth through retained earnings.
 Operate on a 25-30% gross margin.
The financial plan for Trestle Creek Cabinets is outlined in the following sections.

BREAKEVEN POINT:
It is defined as the level of output when total revenue is equal to total cost. This is a point of no profit
and no loss.
year total production

VC FC TOTALCOSTPRICE PER PRODUCT
AVERAGE PRICE
2012 220 300000 500000 450000 25000 28000 250000
2013 240 450000 550000 460000 28000 30000 300000
2014 260 492000 580000 470000 30000 32000 350000
2015 300 528000 592000 490000 32000 35000 400000
2016 260 500000 482000 470000 30000 31000 390000
2017 200 480200 450000 440500 29000 300000 380000

3.6 COST & REVENUE:
Cost is the lowest total expense needed to produce each level of output. When quantity rises,
total cost also rise. Cost are of two categories namely, fixed cost and variable cost.
Fixed cost (FC) represent the total expense that is paid out even when no output is produced; fixed
cost is unaffected by any variation in the quantity of the output.
Variable cost (VC) represents expenses that vary with level of output – such as raw materials,
wages, and fuel – and includes all costs that aren’t fixed.
Always by definition,
Total Cost (TC) = FC + VC
Whereas revenue is the sum of total cost and profit,
Revenue = TC + Profit
VC TC PRICE TR AR MR PROFIT LOSS

1500 6500 700 0 0 0 6500
2000 7000 900 900 900 900 6100
2500 7500 1000 2000 1000 1100 5500
3000 8000 1500 4500 1500 2500 3500
3500 8500 2500 10000 2500 5500 1500
4000 9000 3300 16500 3300 6500 7500
4200 9200 3800 22800 3800 6300 13600
4500 9500 4500 31500 4500 8700 22000
3.8 MARKET STRUCTURE & COMPETITION:
 The company falls under the oligopoly market form and it is perceived mainly
from its demand elasticity
 Jai Furn world has monopolistic market structure

Features of Monopolistic Competition:
1. Large Number of Sellers:
There are large numbers of firms selling closely related, but not homogeneous products. Each
firm acts independently and has a limited share of the market. So, an individual firm has limited
control over the market price. Large number of firms leads to competition in the market.
2. Product Differentiation:
Each firm is in a position to exercise some degree of monopoly (in spite of large number of
sellers) through product differentiation. Product differentiation refers to differentiating the
products on the basis of brand, size, colour, shape, etc. The product of a firm is close, but not
perfect substitute of other firm.
S.NO FEATURES Monopolistic

1 Number of firms Many but not large
2 Nature of product Product differentation
3 Price Elasticity of Large
demand for an
individual firm
4 Entry Easy entry
5 Profit Abnormal profit or loss
in short run and normal
in long run
6 Selling or promotion Very essential
cost
7 Price policy Price Making
FINDINGS:

1. The company we chose “Jai fun world”, has helped us in understanding the micro economic
concepts.
2. The study reveals that how the company is taking its decision and forecasting the demand.
3. The company is also able to meet its equilibrium paint and have given us a better understanding
regarding the concepts.
4. The factor which hinders the learning during the study is time constraint, i.e. the company’s head
was not able to give us ample of tie for discussion.
5. Till now the company have not gone through any loss, so we were not able to get the breakeven
point.
6. The study helped us to upgrade our knowledge in the field.
7.There is no website for the company
SUGGESTIONS:
1. The company welcomed our suggestions and feedback.
2. We suggested the demand forecasting that we did for the company.
3.lach of machine technique used in company
3. Because of lack of experience in the field and technical knowledge, we were not able to suggest
more to the company.
Competitors:
Furncoms industries, saravannampatti
Wooden gardens, saravanampatti Coimbatore

MACRO ECONOMIC CONCEPT:
The study of macroeconomics takes into account many of the factors that determine not just
the current financial state of a nation or region but its prospective future.
As the world trends toward a global economy in which corporations establish international presences
and countries finance each other based on the promise of shared profit, it is essential to have a clear
view of a country's economic situation .
Macroeconomics is the study of BIG(macro) issues .
Why study important? Here are a few critical reasons :
 It describes how the economy(that is so complex) as a whole functions and how the level
of national income and employment is determined on the basis of demand and supply.
 It helps to achieve the goal of economic growth, a higher GDP level, and higher level of
employment. It analyses the forces which determine economic growth of a country and
explains how to reach the highest state of economic growth and sustain it.
 It helps to solve economic problems like poverty, unemployment, inflation, deflation by
mean of formulating proper policies .
 With a detailed knowledge of the functioning of an economy , it has helped macro-
economist to formulate correct economic policies .
 Macroeconomics has evolved over the time and macroeconomic theory has saved us from
the dangers of application of microeconomic theory to the problems that require us to look
broader view over economy .
So in short(at national level) if you have fair idea of macroeconomics ,you should be able to
understand some of things like great depression of 2008 , Fiscal policies, how tax rates are
determined , Inflation , Unemployment , Minimum wage , Income inequality etc.
At an individual level macroeconomics could be of some use like :

1-Is it a good time to switch jobs?
2- Should you ask for raise ?
3- Should buy new house or wait?
4-Should get a fixed or variable rate mortgage?

At business level it could help in :
1- How much to manufacture ?
2- Inventory levels ?
3- Invest in new plants ?
4- Expand into foreign markets or downsize?
CONCLUSION:
The study of the company that we did for our project helped us in better understanding about
the micro economic concept.
The data that we were able to collect from the company provided us the information about
the demand and supply of its product, the elasticity of demand, demand forecasting, equilibrium
concept and also the breakeven point. In addition, the company also provided us this decision making
strategy with their previous case of decision making strategy. We were able to know the market
structure in support of the company. The completion of our project is possible only because of the
co-operation from the company head and also by the guidance of our faculty Mr. John V. Sugumaran

BIBLOGRAPHY:
SOME OF THE POINTS ARE REFERED FROM WEBSITE FORGOT THE LINKS, I
PERSONALLY THANKS EACH AND EVERYONE TO HELP FOR DOING THIS PROJECT
REPORT .

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MANAGERIAL ECONOMICS

TABLE OF CONTENTS Title Page No.

1.2 OBJECTIVES OF THE PROJECT 5

1.3 SCOPE OF THE PROJECT 6

CHAPTER 2- PROFILE OF AN ORGANISATION 8

CHAPTER 3- MICRO ECONOMIC CONCEPT 9

3.1 DECISION MAKING 11

3.2 EQUILIBRIUM POINT 12

3.4 DEMAND FORECASTING 17

3.5 PRODUCTION- RETURN CONCEPT 22

3.6 COST AND REVENUE 23

3.7 BREAKEVEN POINT 25

3.8 MARKET STRUCTURE AND COMPETITION 26

MICRO ECONOMIC OF AN MANUFATURING SECTOR JANEEFAR .DJ (MBA)

MICRO ECONOMIC OF AN MANUFATURING SECTOR JANEEFAR .DJ (MBA)

● To Maintaining the highest quality furniture and be a leading manufacturer in the

MICRO ECONOMIC OF AN MANUFATURING SECTOR JANEEFAR .DJ (MBA)

 This project provides a practical insight of demand and supply in a company

MICRO ECONOMIC OF AN MANUFATURING SECTOR JANEEFAR .DJ (MBA)

Had a clear study about the company production unit

Collected information with workers

Analysis competitor for the company we choosen

MICRO ECONOMIC OF AN MANUFATURING SECTOR JANEEFAR .DJ (MBA)

 Importing new trending design

 Company don’t not have online marketing

MICRO ECONOMIC OF AN MANUFATURING SECTOR JANEEFAR .DJ (MBA)

Jai furn world

Nature of Business Manufacturer/ retailers

Additional Business Service Provider

Company CEO Manikandan

Year of Establishment 2005

MICRO ECONOMIC OF AN MANUFATURING SECTOR JANEEFAR .DJ (MBA)

Attention to minute details and extraordinary sense of Quality is displayed in the

MICRO ECONOMIC OF AN MANUFATURING SECTOR JANEEFAR .DJ (MBA)

MICRO ECONOMIC OF AN MANUFATURING SECTOR JANEEFAR .DJ (MBA)

MICRO ECONOMIC OF AN MANUFATURING SECTOR JANEEFAR .DJ (MBA)

MICRO ECONOMIC CONCEPT

3.1 DECISION MAKING

1. To maintain a old furniture showroom with taken for rent.

ANALYSIS: S.NO OPTION 1 OPTION 2

MICRO ECONOMIC OF AN MANUFATURING SECTOR JANEEFAR .DJ (MBA)

1. To continue with the older manufacturing unit

2. To explain manufacturing unit

Business Impact Analysis of demonetization :

MICRO ECONOMIC OF AN MANUFATURING SECTOR JANEEFAR .DJ (MBA)

MICRO ECONOMIC OF AN MANUFATURING SECTOR JANEEFAR .DJ (MBA)

MICRO ECONOMIC OF AN MANUFATURING SECTOR JANEEFAR .DJ (MBA)

MICRO ECONOMIC OF AN MANUFATURING SECTOR JANEEFAR .DJ (MBA)

Where, X axis = Quantity

Demand is determined by the following:

Income of the consumer

Price of the related goods

Taste and preferences

MICRO ECONOMIC OF AN MANUFATURING SECTOR JANEEFAR .DJ (MBA)

More furniture vendors are choosing to go green.

Prices of related goods

MICRO ECONOMIC OF AN MANUFATURING SECTOR JANEEFAR .DJ (MBA)

Production and operation plan:

● Hire additional workers as demand increases

● Employment costs for advertising, travel, interviewing, training, and others

● Shift premium costs if additional shift is added

● Skilled workers may not be available when needed

● Layoff workers as demand decreases